Initially launched in May 2021, a Nigerian edtech startup aimed to transform online learning for K-12 students in Africa. The company received $3.5 million in funding the same year to enhance its operations. However, despite the funding, the startup ceased operations in February 2025 due to economic challenges.
Another edtech startup, specializing in AI and machine learning services, is currently facing difficulties. The company’s CEO mentioned a drop in user intake when transitioning to a subscription model, attributing it to financial constraints in the market.
The economic situation in Nigeria has made it challenging for edtech startups to implement subscription models effectively. Factors such as high inflation and increased data costs have impacted the industry. Experts suggest the need for more adaptable revenue models to align with the economic realities in the country.
One suggestion is to offer ‘learn now and pay later’ options to students, allowing them to access educational resources upfront and defer payment. This approach aims to cater to individuals facing financial constraints.
Edtech startups must diversify their revenue streams beyond subscription models to ensure sustainability. Strategies like licensing educational content, forming B2B partnerships, and exploring B2G solutions can help in navigating the challenges present in the industry.
With the changing landscape of edtech, companies must focus on building self-sustaining business models rather than solely relying on external funding. Adapting to the economic environment and developing strategic financial plans are crucial for long-term success in the industry.